Rakesh Kumar's questions to MASTERBEEF (MB) leadership • Q3 2018
Question
On behalf of Jen Lowe, Rakesh Kumar from UBS asked about the core MINDBODY business's organic growth rate, which he calculated in the low 20s ex-Booker, and its near-term outlook. He also questioned if the company was now at full capacity for sales hiring or if a pause was expected after adding 51 reps.
Answer
CEO Rick Stollmeyer cautioned that a simple ex-Booker calculation is misleading, as the company is actively diverting salon and spa leads to the Booker platform, creating an artificial headwind for the MINDBODY platform's growth. He emphasized that the core fitness vertical remains very strong. He added that while they will continue to hire, future sales team growth will be more "metered" than the rapid pace seen in Q3.