$PTON (+4,1 %) | Peloton Q1 Earnings Highlights:

🔹 Revenue: $586M (Est. $573M) 🟢; DOWN -2% YoY

🔹 Adj EBITDA: $116M (Est. $57M) 🟢; UP +1171% YoY

🔸 Appoints Peter Stern as CEO

Q2 Guidance:

🔹 Revenue: $640M-$660M (Est. $663M) 😕

🔹 Adjusted EBITDA: $20M-$30M (Est. $18M) 🟢

🔹 Gross Margin: 46.5%, reflecting mix shift towards Connected Fitness Products during holiday season

FY25 Outlook:

🔹 Revenue: $2.4B-$2.5B (Est. $2.46B) 😕; DOWN -9% YoY

🔹 Adjusted EBITDA: $240M-$290M

🔹 Free Cash Flow: $125M+

Subscription and Segment Performance:

🔹 Connected Fitness Products: $159.6M; DOWN -12% YoY

🔹 Subscription Revenue: $426.3M; UP +3% YoY

🔹 Total Gross Margin: 51.8%, up 390 bps YoY

Operational Metrics:

🔹 GAAP Net Loss: -$1M; improvement of $158M YoY

🔹 Free Cash Flow: $11M; UP +113% YoY

🔹 Total Members: 6.2M; DOWN -3% YoY

🔹 Paid Connected Fitness Subscriptions: 2.9M; DOWN -2% YoY

🔹 Paid App Subscriptions: 582K; DOWN -24% YoY

🔹 Average Net Monthly Paid Connected Fitness Subscription Churn: 1.9%, UP +40 bps YoY

CEO and Board Updates:

🔸 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.

🔸 Interim CEOs Karen Boone and Chris Bruzzo to return to Board roles following Stern’s transition.

Strategic Focus:

🔸 Cost Structure Optimization: $200M run-rate cost savings expected by end of FY25.

🔸 Enhancing Product Profitability: Improved Connected Fitness Gross Margin to 9.2%, UP +600 bps YoY.

🔸 Marketing Efficiency: Sales and Marketing expenses reduced by 44% YoY; strategic spend increase planned for holiday season.

🔸 Product and Market Expansion: Expanded retail channels with Costco and introduced new subscription and content initiatives aimed at diversifying and enhancing Member engagement.