MINDBODY, Inc. (NASDAQ: MB), the leading provider for online business management software for the wellness services industry, announced impressive results for the second quarter of 2016, including revenue of $33.6 million, a 36 percent increase year-over-year. Company revenue came in on the high end of its projected revenue range of $32.7 million to $33.7 million, reports Club Industry.

Other Q2 highlights for MINDBODY include:

• Subscription and services revenue was $20.1 million, a 35 percent increase year-over-year.
• Payments revenue was $12.9 million, a 39 percent increase year-over-year.
• End of period subscribers grew 22 percent, year-over-year, to 55,771.
• Average monthly revenue per subscriber (ARPS) was $202, a 9 percent increase year-over-year.
• Payments volume increased 29 percent, year-over-year, to $1.6 billion.
• Net loss for the period was $6.5 million, compared to a net loss of $8.8 million year-over-year.

“The second quarter produced excellent results, highlighted by consistently strong revenue growth and substantial improvement on the bottom line,” said Rick Stollmeyer, co-founder and CEO of MINDBODY in a press release.

“In particular, we are pleased with our traction among higher value subscribers. These businesses range from independent practitioners to multi-location enterprise businesses. These are the subscribers most likely to grow, producing increasing future transaction volumes and meaningful inventory for our consumer app and our API partners,” Stollmeyer added.

Currently, MINDBODY offers five subscription plans for wellness service providers, ranging in price from $45 a month for the Solo plan and $245 a month for the Ultimate plan, which includes a custom branded app for subscribers.

According to Club Industry, in a conference call with analysts, Stollmeyer said that users attended more than 445 million class and appointment sessions and made nearly $8 billion in purchases through the MINDBODY Marketplace.

“This scale of activity is attracting a new wave of exciting partnerships,” Stollmeyer said on the call.

MINDBODY also announced that chief financial officer Brett White would also take on the role and responsibilities of chief operating officer, and MINDBODY has formed a strategic partnership with Under Armour. Though details of the partnership were not given, Stollmeyer said on an earnings call that Under Armour and MINDBODY would make an official announcement about the deal soon. Under Armour owns MyFitnessPal and MapMyFitness with large user bases.

“We had a successful second quarter highlighted by robust growth in both brick and mortar subscribers and payments volume,” White said in a statement. “These results demonstrate the ongoing strength of the wellness services market we serve, and we look forward to continuing to extend our market leadership.”

MINDBODY estimates its full-year revenue will fall between $137 million and $139 million, growth of 35 percent to 37 percent over 2015.

Insider Take:

MINDBODY experienced some great results in the second quarter of 2016, but the net loss still hurts. The good news is that the net loss is lower than it was for the same period last year, and it seems to be on the right track in terms of growing revenue and subscribers in the double digits. The partnership with Under Armour will get MINDBODY in front of a large user base, which can only benefit the company.