$PTON (+0,64ย %) | Peloton Q1 Earnings Highlights:
๐น Revenue: $586M (Est. $573M) ๐ข; DOWN -2% YoY
๐น Adj EBITDA: $116M (Est. $57M) ๐ข; UP +1171% YoY
๐ธ Appoints Peter Stern as CEO
Q2 Guidance:
๐น Revenue: $640M-$660M (Est. $663M) ๐
๐น Adjusted EBITDA: $20M-$30M (Est. $18M) ๐ข
๐น Gross Margin: 46.5%, reflecting mix shift towards Connected Fitness Products during holiday season
FY25 Outlook:
๐น Revenue: $2.4B-$2.5B (Est. $2.46B) ๐; DOWN -9% YoY
๐น Adjusted EBITDA: $240M-$290M
๐น Free Cash Flow: $125M+
Subscription and Segment Performance:
๐น Connected Fitness Products: $159.6M; DOWN -12% YoY
๐น Subscription Revenue: $426.3M; UP +3% YoY
๐น Total Gross Margin: 51.8%, up 390 bps YoY
Operational Metrics:
๐น GAAP Net Loss: -$1M; improvement of $158M YoY
๐น Free Cash Flow: $11M; UP +113% YoY
๐น Total Members: 6.2M; DOWN -3% YoY
๐น Paid Connected Fitness Subscriptions: 2.9M; DOWN -2% YoY
๐น Paid App Subscriptions: 582K; DOWN -24% YoY
๐น Average Net Monthly Paid Connected Fitness Subscription Churn: 1.9%, UP +40 bps YoY
CEO and Board Updates:
๐ธ Peter Stern appointed as CEO and President, effective January 1, 2025, bringing expertise from Apple and Ford, along with a strategic focus on innovation and growth.
๐ธ Interim CEOs Karen Boone and Chris Bruzzo to return to Board roles following Sternโs transition.
Strategic Focus:
๐ธ Cost Structure Optimization: $200M run-rate cost savings expected by end of FY25.
๐ธ Enhancing Product Profitability: Improved Connected Fitness Gross Margin to 9.2%, UP +600 bps YoY.
๐ธ Marketing Efficiency: Sales and Marketing expenses reduced by 44% YoY; strategic spend increase planned for holiday season.
๐ธ Product and Market Expansion: Expanded retail channels with Costco and introduced new subscription and content initiatives aimed at diversifying and enhancing Member engagement.