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Peloton
🇺🇸 NASDAQ:PTON
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Dec 31, 2019

Peloton Q2 2020 Earnings Report

Peloton's second quarter was marked by strong growth in connected fitness subscribers and total revenue, driven by holiday sales and successful home trial program. However, the company experienced a net loss and an adjusted EBITDA loss.

Key Takeaways

Peloton Interactive, Inc. reported strong financial results for Q2 2020, with a 77% increase in total revenue to $466.3 million. Ending Connected Fitness Subscribers grew by 96% to 712,005. However, the company experienced a net loss of $(55.4) million and an Adjusted EBITDA loss of ($28.4) million.

Connected Fitness Subscribers increased by 96% year-over-year, reaching 712,005.

Total revenue grew by 77% year-over-year to $466.3 million.

Average Net Monthly Connected Fitness Churn was low at 0.74%.

Connected Fitness Subscribers worked out over 24.3 million times during the quarter.

Total Revenue
$466M
Previous year: $263M
+77.4%
EPS
-$0.2
Previous year: -$0.236
-15.2%
Ending Paid Fitness Subs
712.01K
Previous year: 362.39K
+96.5%
Avg. Monthly Churn
0.74%
Previous year: 0.52%
+42.3%
Gross Profit
$197M
Previous year: $111M
+77.1%
Cash and Equivalents
$533M
Free Cash Flow
$83.1M
Total Assets
$2.58B

Peloton

Peloton

Peloton Revenue by Segment

Forward Guidance

Peloton provided guidance for Q3 and full fiscal year 2020. They anticipate 843,000 to 848,000 ending Connected Fitness Subscribers for Q3, growth of 85% at midpoint and $470 million to $480 million total revenue, 50% growth at midpoint. For the full year, they anticipate 920,000 to 930,000 ending Connected Fitness Subscribers, growth of 81% at midpoint and $1.53 billion to $1.55 billion total revenue, 68% growth at midpoint.

Positive Outlook

  • 843,000 to 848,000 ending Connected Fitness Subscribers, growth of 85% at midpoint
  • $470 million to $480 million total revenue, 50% growth at midpoint
  • $(35) million to $(25) million Adjusted EBITDA, (6.3)% Adjusted EBITDA margin at midpoint of ranges
  • 920,000 to 930,000 ending Connected Fitness Subscribers, growth of 81% at midpoint
  • $1.53 billion to $1.55 billion total revenue, 68% growth at midpoint

Challenges Ahead

  • $(35) million to $(25) million Adjusted EBITDA, (6.3)% Adjusted EBITDA margin at midpoint of ranges
  • $(115) million to $(95) million Adjusted EBITDA, (6.8)% Adjusted EBITDA margin at midpoint of ranges
  • We expect Average Net Monthly Connected Fitness Churn to stay below 0.95% in Q3 and for the full fiscal year 2020.
  • For Q3 fiscal 2020 and fiscal year 2020 we expect a gross margin of 43% to 44% and 43.5% to 44.5%, respectively.
  • In Q3, we expect Connected Fitness Product gross margin to remain steady year over year

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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