Planet Fitness, Hampton, New Hampshire, reported 2022 revenue of $936.8 million, a 59.6 percent increase, and fourth quarter 2022 revenue of $281.3 million, a 53.2 percent from the same periods in 2021.
Part of the revenue growth was attributed to a November promotion in which members who were at the $10 classic membership but upgraded to the $24.99 Black Card membership with a one-year commitment received a free Halo Amazon Fitness and Health tracker.The company is working on an upcoming similar promotion and continues to explore partnership options with other well-known brands in adjacent categories for the fitness industry, Rondeau said in a call with analysts on Feb. 23, adding that Planet Fitness is an attractive brand partner given its size and scale in the diversity of its members.The company ended 2022 with record membership growth in the fourth quarter, which created momentum coming into first quarter 2023, he said.
Driving the member growth was a December national promotion reminding consumers it wasn’t too late to join a gym in 2022 to get a start on new year’s resolutions,“It drove great momentum at the end of the year as we head into the first quarter, during which we typically get 60 percent of our full year net membership gain pre-pandemic,” Rondeau said.The membership growth also was fueled by a more coordinated marketing agency structure enabling the company to better leverage data analytics to optimize national and local media spend.The company had 17 million members at the end of 2022, an increase of 1.8 million members since the end of 2021. More than 6 percent of all Americans over the age of 15 are Planet Fitness members, Rondeau said.
“But we’re not stopping there,” he said. “We believe that in the future we can double our membership given our historic ability to do so and the increasing penetration we’ve experienced with each successive generation. We believe our purpose of enhancing people’s lives and creating a healthier world sets us, our franchisees, and our shareholders up for long-term success.”Members who are visiting the gym are visiting more frequently, a possible sign that they are more dedicated to working out, Rondeau said. Members did approximately 470 million workouts in at Planet Fitness in 2022, up more than 20 percent over 2021. Almost 40 percent of members used their membership in a 30-day period in 2022, up from mid-30 percent in 2021. Cancelation rates were also slightly lower compared to pre-COVID.