Last May, the Business Journal honored five local executives shaping Orange County’s business economy at the 20th annual Excellence in Entrepreneurship Awards.
The industries varied—the winners ranged from a clean energy enthusiast to fitness franchiser to a real estate developer. Since then, one exec took his company public, another changed roles, and others saw record years in 2021.
The Business Journal caught up with the execs to see what’s changed in the past year, with write-ups on this page and page 28.
The next Excellence in Entrepreneurship Awards ceremony is scheduled for May 26 at the Irvine Marriott; bios for nominees for the upcoming event begin on page 44.
Since Xponential Fitness Inc. (NYSE: XPOF) CEO Anthony Geisler received his Excellence in Entrepreneurship Award last May, his company has seen growth on multiple fronts.
Revenue for the Irvine-based fitness brand curator, which calls itself the largest global franchiser of boutique fitness brands, totaled $155 million in 2021, up 45% from the year prior. It expects total revenue for this year to range between $201 million to $211 million.
“The operational accomplishments that drove our record financial performance in 2021 further provide us great momentum into 2022,” Geisler told analysts in a conference call last month.
Xponential went public via an initial public offering last July, at $12 a share. Shares for the company have since more than doubled to $25 as of late last week, giving Xponential a more than $1 billion market cap.
After the company reported its fourth-quarter earnings last month, analyst firm Raymond James maintained its strong “buy” rating.
Xponential closed out 2021—a “milestone year” for the company—with over 2,100 studios globally, up from roughly 1,600 toward the end of 2020. The company expects to open 500 studios this year and has over 1,800 licenses contractually obligated to open in North America.
“The key to our ongoing success is our ability to proactively manage the health of our franchise system,” Geisler said in last month’s conference call.
Three months after its July IPO, the company welcomed a new brand to its portfolio: Australia-based fitness franchiser Body Fit Training. Xponential acquired the brand for $44 million in a combination of cash on the balance sheet and debt from its existing senior secured loan facility, company officials said.
The company also inked a deal with the parent company of LA Fitness last November, in which it will offer 350 franchise licenses within LA Fitness and City Sports Club locations over the next five years. The first few studios already opened earlier this year, regulatory filings indicate.
Last month, Xponential launched a new monthly subscription program called XPASS, which gives subscribers access to all of its brands, some of which include Club Pilates, Pure Barre, Cyclebar and Yogasix.
XPASS is a “great funnel for new customers, with more than 15% of account holders having never interacted with one of our brands prior to joining and nearing 60% of account holders being previously lapsed from an Xponential brand or deemed inactive by studio sales staff,” Geisler told investors.