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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.
Peloton
Peloton
Peloton Revenue by Segment
Revenue by Segment
Connected Fitness Products Revenue
CapyFin.comSubscription Revenue
CapyFin.com 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