The Joint (JYNT) Oppenheimer’s 24th Annual Consumer Growth & E-Commerce Conference summary

Business overview and customer demographics

• Founded in 1999, the company revolutionized chiropractic care by making it affordable, accessible, and convenient, growing from 8 units in 2010 to nearly 1,000 today.

• 1.7 million people visited last year, with 45% millennials and 19% Gen Z; median age is 37.6, and gender split is nearly even.

• 36% of new patients had never visited a chiropractor before, indicating strong market creation.

• Younger customers are attracted through a strong online presence and digital marketing.

• 85% of clinic sales are membership-based, with an average membership lasting just over six months.

Impact of economic conditions and marketing

• The business thrived during the pandemic, hitting record metrics in 2021, but saw new patient counts drop 14% in 2022 and 7% in 2023 due to economic headwinds.

• Customers are financially sensitive, with average incomes between $50,000-$105,000, and are impacted by inflation and cost of living.

• The company is the value proposition in its market, with no less expensive alternatives available.

• A new CMO has revitalized digital marketing, contributing to a recent uptrend in new patient counts.

• Focus is shifting to re-engaging lapsed patients and increasing value for existing members.

Strategic shift to franchising and financial implications

• The company is transitioning from a mixed model to a predominantly franchise model, selling corporate-owned units to franchisees.

• This shift will reduce GAAP revenues but is expected to improve margins and gross earnings by shedding significant operating costs.

• Capstone Partners was brought in to accelerate refranchising, with significant traction expected in the second half of 2024.

• The vast majority of units will be franchised, with only a small corporate portfolio possibly retained.

• Franchisees range from individual practitioners to sophisticated multi-unit operators.