Kindling Investment Partners is Proud to Congratulate Portfolio Company, Caliber, on Absolutely Stellar Q3 2023 Results and YTD Progress

I’m excited to report that Q3 was another strong quarter for Caliber.? Double-digit growth in both active app users and 1-on-1 coaching members resulted in a 24% increase in total sales for the quarter.

A key driver of our performance in Q3 was a material improvement in our conversion rate to paying coaching members, one of our top priorities for the quarter.? Better merchandising of coaching throughout our experience, the launch of several top-requested features and an attractive mix of marketing channels contributed to a 28% improvement in conversion rate to Premium Coaching among app users.? This win drove another quarter of improved marketing efficiency.? We are now generating a profit net of marketing on our first 3-month coaching package sale, allowing us to confidently invest in marketing to grow the business.

Exiting Q3, our coaching business has never looked better.? We are attracting world-class talent to the team, equipping our coaches with the technology they need to maximize their impact, and changing the lives of our members as a result.? The best evidence of this is our Net Promoter Score for Premium Coaching, which hit a record high of 82 among iOS members, and 77 among Android members in recent weeks.

For Q4, our priorities remain as follows:

1. Grow Caliber app users.? Our formula for growing revenue is proven and predictable.? When we grow active app users, we grow coaching members.

1. Further improve conversion rate from free to paid.? We saw the impact of moving this metric in Q3, which not only drives revenue but also improves our marketing efficiency, creating a positive feedback loop for the business.

1. Increase AOV + LTV on coaching members.? In response to user feedback, we will be launching additional paid options as part of our Premium coaching packages, which we expect to improve both AOV on new package sales and LTV among coaching members.

Highlights Since Last Update

• Grew quarterly sales +24% from Q2.

• Achieved best-ever marketing efficiency.

• Grew Premium Coaching members +26%.

• Achieved our best ever rank in the Apple App Store (#127 in Health & Fitness).??

• Launched creator-led advertising on TikTok and developed a repeatable playbook for scaling app acquisition via this channel.

• Began accepting FSA & HSA funds for Caliber coaching.

Key Metrics

• Sales.? Q3 total sales up 24% vs. Q2 on the back of strong growth in 1-on-1 coaching members.? Sales from new products increased from 5% of sales in Q2 to 7% of sales in Q3.? Sales in Aug and September were down marginally due to lower marketing spend vs. July and short-term inefficiencies as we tested into new marketing channels.

Definition:? Cash collected in the period.? As we collect cash upfront for the majority of our package sales, our monthly sales volume is typically higher than GAAP revenue shown on our P&L.

• Active 1-on-1 Coaching Members.? Up 26% in Q3.? Active 1-on-1 coaching members are up 69% YTD.

?Definition: Number of end of period paying 1-on-1 coaching members. Excludes legacy members acquired on our pre-launch business prior to Nov 2020.

• Active Caliber Pro Members.? Active Caliber Pro members were flat QoQ due to us swapping out promotion of Pro in favor of Coach-Designed Meal Plans and Body Composition Scans.? We’ve since reverted to featuring Pro and expect membership growth to resume in Q4.

Definition: Number of end of period active Caliber Pro members.

• Monthly Active App Users (MAUs).? Up 12% from the end of Q2.? MAUs are up 141% YTD.? MAU growth in Q3 was tempered by slightly lower marketing spend in August and September plus softness in our affiliate partnerships.

Definition: # of monthly active Caliber app users.

• Daily Active App Users (DAUs).? Average DAUs of the Caliber app increased 26% in Q3.? Average DAUs are up 320% vs. Q3 of last year, and we achieved multiple DAU records in Q3.

Definition: # of daily active Caliber app users

• Marketing Spend & Efficiency. ?Cost per 1-on-1 coaching member improved 10% from Q2 on a 26% increase in marketing spend.? This is our 3rd quarter in a row of increasing marketing spend while improving efficiency.