According to The Information, Under Armour is seeking buyers for its health and nutrition app MyFitnessPal, as the company looks to save costs during the COVID-19 crisis.
As of May 2020, MyFitnessPal was the second top grossing health and fitness app worldwide, with revenue totalling $6.5 million that month, according to Sensor Tower. This represented a year-on-year increase of 1.3% compared to May 2019.
The sports apparel and wearables tech company purchased MyFitnessPal in 2015 for roughly $475 million. Under Armour purchased a number of fitness apps around that period, including MapMyFitness for $150 million and Endomondo $85 million.
In 2018 Under Armour confirmed that there had a been a data breach that affected as many as 150 million MyFitnessPal users, stating that usernames, passwords and email addresses tied to accounts were exposed in the breach.
In its Q1 2020 earnings announcement, Under Armour did outline plans to reduce operating expenses and prioritising liquidity.
Under Armour reported that its revenue was down 23% in Q1 2020, and attributed 15 of these percentage points to “the decline related to COVID-19 pandemic impacts in the quarter”.
