What drove PLNT's consistent earnings beats in 2024?

Planet Fitness (PLNT) achieved consistent earnings beats in 2024 due to a combination of strategic expansions, increases in franchise revenues, and robust equipment sales, as detailed below:

1. **Strategic Expansion and Club Openings**: Planet Fitness opened 150 new clubs in 2024, including 86 franchise-owned clubs, significantly expanding its footprint. This aggressive expansion contributed to a 19.4% increase in total revenue to $340.5 million in Q4 2024, surpassing analyst expectations.
2. **Franchise Segment Growth**: The franchise segment revenue saw an 11% year-over-year increase, reaching $344.32 million in 2024. This growth was supported by the successful implementation of a price increase for the classic card membership, which improved unit economics.
3. **Equipment Sales**: The equipment segment experienced a substantial jump of 49.2%, contributing to the overall revenue growth. This surge in equipment sales reflects the company's successful marketing efforts and the demand for fitness equipment.
4. **System-Wide Sales and Same Club Sales Growth**: System-wide sales increased to $1.2 billion, up from $1.1 billion in the previous year. Same club sales also grew by 5.5%, indicating a strong demand from existing members.
5. **Membership Growth**: Planet Fitness added 1 million new members in 2024, ending the year with approximately 19.7 million members. This significant increase in membership base directly contributed to the growth in revenue.
6. **Effective Marketing and Brand Awareness**: The company's high brand awareness and effective marketing strategies, including significant advertising investments, have maintained and grown its market presence, supporting revenue growth.

In summary, Planet Fitness' consistent earnings beats in 2024 can be attributed to its strategic expansions, increases in franchise revenues, robust equipment sales, system-wide sales growth, membership growth, and effective marketing efforts. These factors collectively drove the company's strong financial performance, exceeding market expectations.