November 3, 2023 - Markets

Peloton Narrows Losses, Sheds Users

Its latest earnings report is a big TBD.

Peloton

Peloton just released its Q1’FY24 earnings report; revealing a look into its turnaround effort.

The good:

Improving on inventory, net loss was $159.3M, down from a $408.5M loss last year.
It expects $10M from its content partnership with lululemon next quarter.
Peloton expects 20% growth in its FY24 for international markets, led by the UK and Germany.

The bad:

Quarterly sales were $595.5M, down from $616.5M during the same quarter in ’22.
It’s expecting $715 –750M for its holiday quarter, 8% lower than last year’s holidays.
Next quarter, Peloton expects a 21% YoY slide in paid app subscriptions with 12% churn.

What it means: The connected fitness company is struggling to convert free app users into paying customers, and US demand for its full-price hardware might be tapped out.

TBD. While its bike rental program is seeing marginal success—33% of all Bike sales were rentals—CEO Barry McCarthy is particularly hot on the Tread+.

The product’s safety recall set them back $40M, but he’s confident in its relaunch, saying its users are “exponentially more emotionally engaged” than with anything else Peloton has ever made.

Takeaway: While the company has been busy announcing new partnerships and content deals, it still has to translate those press releases into recurring revenue as its turnaround effort continues.

Ryan Deer

Up Next

View All

August 25, 2023

Peloton Reports Q4 Losses, Pushes New Partnerships

The comeback won’t come easy, even with new spectators.

Steady Growth Pushes Xponential Fitness Over $1B in Sales

It opened a new franchise every 17 hours.

February 28, 2023

Planet Fitness Sets New Membership Records

The budget gym approaches $1B in annual sales.

August 30, 2022

Peloton Reports Big Losses, Retools Strategy

It’s riding six consecutive quarterly losses.

{"head":"<script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':\r\nnew Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],\r\nj=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src=\r\n'https:\/\/www.googletagmanager.com\/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);\r\n})(window,document,'script','dataLayer','GTM-KV7LDXC');<\/script>\r\n\r\n<script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':\r\nnew Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],\r\nj=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src=\r\n'https:\/\/www.googletagmanager.com\/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);\r\n})(window,document,'script','dataLayer','GTM-T7J5HFB');<\/script>\r\n\r\n<script>\r\n!function(f,b,e,v,n,t,s)\r\n{if(f.fbq)return;n=f.fbq=function(){n.callMethod?\r\nn.callMethod.apply(n,arguments):n.queue.push(arguments)};\r\nif(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\r\nn.queue=[];t=b.createElement(e);t.async=!0;\r\nt.src=v;s=b.getElementsByTagName(e)[0];\r\ns.parentNode.insertBefore(t,s)}(window, document,'script',\r\n'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\r\nfbq('init', '605118897773201');\r\nfbq('track', 'PageView');\r\n<\/script>\r\n<noscript><img height=\"1\" width=\"1\" style=\"display:none\"\r\nsrc=\"https:\/\/www.facebook.com\/tr?id=605118897773201&ev=PageView&noscript=1\"\r\n\/><\/noscript>\r\n","body":"\r\n<noscript><iframe src=\"https:\/\/www.googletagmanager.com\/ns.html?id=GTM-KV7LDXC\"\r\nheight=\"0\" width=\"0\" style=\"display:none;visibility:hidden\"><\/iframe><\/noscript>\r\n\r\n\r\n\r\n<noscript><iframe src=\"https:\/\/www.googletagmanager.com\/ns.html?id=GTM-T7J5HFB\"\r\nheight=\"0\" width=\"0\" style=\"display:none;visibility:hidden\"><\/iframe><\/noscript>\r\n","footer":"<script type=\"text\/javascript\" id=\"linkedin-script\">\r\n_linkedin_partner_id = \"4087129\";\r\nwindow._linkedin_data_partner_ids = window._linkedin_data_partner_ids || [];\r\nwindow._linkedin_data_partner_ids.push(_linkedin_partner_id);\r\n<\/script><script type=\"text\/javascript\">\r\n(function(l) {\r\nif (!l){window.lintrk = function(a,b){window.lintrk.q.push([a,b])};\r\nwindow.lintrk.q=[]}\r\nvar s = document.getElementsByTagName(\"script\")[0];\r\nvar b = document.createElement(\"script\");\r\nb.type = \"text\/javascript\";b.async = true;\r\nb.src = \"https:\/\/snap.licdn.com\/li.lms-analytics\/insight.min.js\";\r\ns.parentNode.insertBefore(b, s);})(window.lintrk);\r\n<\/script>\r\n<noscript>\r\n<img height=\"1\" width=\"1\" style=\"display:none;\" alt=\"\" src=\"https:\/\/px.ads.linkedin.com\/collect\/?pid=4087129&fmt=gif\" \/>\r\n<\/noscript>\r\n\r\n<script async data-id=\"101397610\" src=\"\/\/static.getclicky.com\/js\"><\/script>"}