Peloton Q1 2022 Earnings Report
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.
Peloton
Peloton
Peloton 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.
- Deleveraging of fixed costs in our supply chain.
- Higher than anticipated variable costs including commodities and freight.
Revenue & Expenses
Visualization of income flow from segment revenue to net income