Red IntermediateCo LLC (dba Virgin Pulse)

Overview Key strengths Key risks Recently improved profitability due to realization of cost savings. Macroeconomic headwinds will affect enterprise information technology (IT) spending, which could weaken sales growth over the next 12 months. Secular tailwinds as rising employee medical costs lead to increased employer demand for preventative solutions. Material interest expense will limit free operating cash flow (FOCF) generation in 2023. Well-diversified across customers and end markets. Financial-sponsor ownership may preclude sustained deleveraging. Virgin Pulse) achieved good revenue growth in 2022, enhancing its profitability profile in the second half of the year. The company's increased its revenue by 29% in the fiscal year ended Dec. 31, 2022 (fiscal year 2022), compared with the same period last year, predominantly due to

...Following a weaker first half, Red IntermediateCo LLC (dba Virgin Pulse) achieved good revenue growth in 2022, enhancing its profitability profile in the second half of the year. The company's increased its revenue by 29% in the fiscal year ended Dec. 31, 2022 (fiscal year 2022), compared with the same period last year, predominantly due to the full year of contributions from its November 2021 acquisition of Welltok. Virgin Pulse also expanded its top-line revenue, on good organic growth in its digital subscription segment, by the mid- to high-single-digit percent area for the year. The company's profitability rebounded in the third and fourth quarters of the year, with EBITDA margins in the mid-20% area in the second half compared with the low-single- digit percent area in the first half. Virgin Pulse's S&P Global Ratings-adjusted EBITDA margins improved to near 14% as of the end of 2022, underpinned by the continued realization of synergies from its Welltok acquisition and more-prudent...

Full Report