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Sep 30, 2021
Peloton Q1 2022 Earnings Report
Peloton's Q1 2022 results reflected growth in subscriptions and revenue, but were impacted by product recalls and pricing adjustments.
Key Takeaways
Peloton's Q1 2022 showed a 6% increase in total revenue to $805.2 million, driven by Connected Fitness products and subscription growth. Ending Connected Fitness Subscriptions grew 87% to 2.49 million. However, the company reported a net loss of $(376.0) million, or $(1.25) per diluted share, and an Adjusted EBITDA loss of $(233.7) million.
Connected Fitness Subscriptions grew 87% to 2.49 million.
Paid Digital Subscriptions grew 74% to 887 thousand.
Total revenue increased 6% to $805.2 million.
Net loss was $(376.0) million, or $(1.25) per diluted share.
Revenue by Segment
Forward Guidance
Peloton is reintroducing guidance ranges due to the challenging consumer environment. They anticipate Q2 revenue of $1.1 billion to $1.2 billion and full year revenue of $4.4 billion to $4.8 billion. Gross margin for Q2 is expected to be approximately 24% and approximately 32% for the full year.
Positive Outlook
- Expects a healthy holiday selling season.
- Forecast assumes unit sales modestly ahead of last year’s Q2 levels.
- Driven by growing consumer interest in the Connected Fitness category.
- Driven by a resumption of marketing and promotional activity.
- Expect Subscription Contribution Margin will continue to modestly expand year-over-year.
Challenges Ahead
- More pronounced tapering of demand related to the ongoing opening of the economy.
- Richer than anticipated mix of sales to original Bike.
- Year-over-year reduction in Connected Fitness gross margin will be driven primarily by the price reduction of our original Bike.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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