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LTH NYSE· Life Time Group Holdings Inc
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LTH NYSE· Life Time Group Holdings Inc
Earnings report Q3 2023

Life Time Group Holdings, Inc. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Life Time Group Holdings, Inc. reported total revenue of $585.2 million for the three months ended September 30, 2023, representing an increase of $88.8 million compared to the same period in 2022. The company's revenue can be broken down into two segments: center revenue and other revenue. Center revenue amounted to $568.4 million, while other revenue reached $16.8 million.

Strengths

The strong revenue growth in the latest quarter can be attributed to continued growth in membership dues and in-center revenue. The company has been able to realize the benefits of pricing actions, which have contributed to the increase in total revenue. This indicates that Life Time Group Holdings, Inc. has been successful in attracting and retaining members, as well as generating revenue from its in-center offerings.

Challenges

While the company has experienced overall revenue growth, it is important to note that there were increases in operating expenses as well. Center operations expenses rose to $319.4 million, rent expenses increased to $69.2 million, and general, administrative, and marketing expenses amounted to $51.7 million. These increases in expenses could potentially impact the company's profitability if not managed effectively.

Noteworthy

Life Time Group Holdings, Inc. has maintained consistent growth in its membership dues and enrollment fees, which reached $407.9 million for the quarter. In-center revenue also showed positive growth, amounting to $160.5 million. The company's ability to generate revenue from multiple sources, including membership dues, in-center offerings, and other revenue streams, demonstrates its diversified revenue streams and resilience in the market.

Summary

Life Time Group Holdings, Inc. delivered a strong performance in the latest quarter, with a significant increase in total revenue driven by growth in membership dues and in-center revenue. The company's pricing actions have been successful in attracting and retaining members, contributing to its revenue growth. However, it is important for the company to closely manage its operating expenses to ensure sustained profitability. Overall, Life Time Group Holdings, Inc. has demonstrated its ability to generate revenue from various sources, showcasing its resilience and potential for continued growth in the future.

Source documents

Form 10-Q  filed on Oct 31, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 559M
Analyst estimates Q3 EPS beat by 32.56%
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