Mindbody Inc., San Luis Obispo, California, reported third quarter 2015 revenue of $26.1 million, a 48 percent increase year over year, according to a media release from the company.

"Our business continued to deliver excellent results in the third quarter with record revenues, subscriber growth and improving margins year over year," Rick Stollmeyer, co-founder and CEO of Mindbody, said in the release on Wednesday. "Meanwhile, our SaaS platform attracted several new industry partnerships that will enable us to deliver even more value to our customers moving forward. These results represent the growing influence of our platform and the continuing success of our growth strategy."

Mindbody, a provider of cloud-based business management software for the wellness services industry, went public in June and trades on the NASDAQ under MB.

For the fourth quarter, Mindbody said it expects to report revenue in the range of $27 million to $28 million, representing 34 percent to 39 percent growth over fourth quarter 2014.

For the full year of 2015, the company expects to report revenue in the range of $100.1 million to $101.1 million, representing 43 percent to 44 percent growth over the full year of 2014.

Highlights from the third quarter include:

  • Subscription and services revenue was $16 million, a 56 percent increase year over year.
  • Payments revenue was $9.5 million, a 46 percent increase year over year.
  • Recurring revenue increased 52 percent year over year. Recurring revenue is the sum of Mindbody's subscription and services revenue and payments revenue. Recurring revenue comprised 98 percent of total revenue in the third quarter of 2015, up from 95 percent in the third quarter of 2014.
  • End of period subscribers grew 25 percent year over year to a record 48,650.
  • Average monthly revenue per subscriber (ARPS) grew 20 percent year over year to approximately $182.
  • Dollar-based net expansion rate was 119 percent, up from 115 percent as of the end of the second quarter of 2015. This metric nets the effects of subscriber churn against the increasing value of subscribers retained indicating the consistent increase in value of Mindbody's subscriber cohorts over time.
  • Payments volume increased 25 percent year over year to approximately $1.28 billion.

During the quarter, Mindbody partnered with Fitbit so users can automatically track the results of any workout booked within Mindbody's global wellness network, integrating personal activity data from their Fitbit account with the Mindbody Connect app. 

In October, Mindbody began rolling out its global integration with Xero, now certified in Australia and New Zealand, allowing Mindbody subscribers to sync their sales data with Xero's cloud accounting system.

Mindbody partnered with Lending Club, the world's largest online marketplace connecting borrowers and investors, to provide Mindbody subscribers with broader access to affordable small business loans.

Mindbody partnered with Adyen to integrate with iDEAL, SOFORT Banking and Giropay, offering additional online payment methods in 13 European countries, including the Netherlands, Austria, Germany, France, Spain and the United Kingdom. 

Mindbody earned HITRUST CSF Certification, meeting key healthcare regulations and requirements for protecting and securing sensitive, private healthcare information. HITRUST integrates the requirements of the HIPAA Security Rule while providing a tailored solution for the unique needs of Mindbody's subscribers.

Mindbody's stock closed Wednesday at $15.30. Its 52-week high was $18 and its 52-week low was $9.14