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Dec 31, 2021
Peloton Q2 2022 Earnings Report
Peloton's Q2 2022 performance was marked by revenue growth, a rise in connected fitness subscriptions, and a net loss, alongside the announcement of leadership and restructuring changes.
Key Takeaways
Peloton Interactive, Inc. reported a 6% increase in total revenue to $1,133.9 million for Q2 2022, driven by subscription revenue growth, while experiencing a net loss of $(439.4) million. The company's connected fitness subscriptions grew by 66% to 2.77 million. Peloton also announced significant restructuring initiatives, including a change in CEO and workforce reductions, aimed at streamlining operations and improving profitability.
Connected Fitness Subscriptions increased by 66% to 2.77 million.
Total revenue grew by 6% to $1,133.9 million.
Average Net Monthly Connected Fitness Churn was 0.79%.
Net loss amounted to $(439.4) million, or $(1.39) per diluted share.
Peloton
Peloton
Peloton Revenue by Segment
Revenue by Segment
Connected Fitness Products Revenue
CapyFin.comSubscription Revenue
CapyFin.com Forward Guidance
Peloton anticipates revenue between $950 million and $1 billion for Q3 2022, with a gross profit margin of approximately 23%. The adjusted EBITDA loss is projected to be between $(140) million and $(125) million. For the full fiscal year 2022, revenue is expected to be between $3.7 billion and $3.8 billion, with a gross profit margin of approximately 28% and an adjusted EBITDA loss between $(675) million and $(625) million.
Positive Outlook
- Expects approximately 2.93 million ending Connected Fitness Subscriptions for Q3 2022.
- Subscription Contribution Margin will continue to expand year-over-year.
- Intends to manage discretionary spend tightly in the back-half of the year.
- Comfortable with balance sheet position.
- Expects to exit the year with approximately $1.2 billion in cash and $500 million of additional revolver capacity.
Challenges Ahead
- Year-over-year reduction in Connected Fitness gross margin.
- Reduced demand plan.
- Limited benefit from pricing changes and warehouse restructuring in Q3.
- Gross Margin of approximately 23% for Q3 2022.
- Adjusted EBITDA loss estimate of $(140) million to $(125) million for Q3 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income