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Jun 30, 2021
Peloton Q4 2021 Earnings Report
Peloton's Q4 2021 results reflected growth in connected fitness subscriptions and digital subscriptions, with total revenue increasing. However, the company faced a net loss due to recall-related costs and increased operating expenses.
Key Takeaways
Peloton's Q4 2021 saw a 54% increase in total revenue, reaching $937 million, driven by strong growth in Connected Fitness and digital subscriptions. Despite this growth, the company reported a net loss of $313.2 million, or $1.05 per diluted share, and an Adjusted EBITDA loss of $45.1 million. The results were impacted by recall-related costs and increased operating expenses.
Connected Fitness subscriptions increased by 114% to 2.33 million, while paid Digital Subscriptions grew by 176% to 874,000.
Total revenue increased by 54% to $937 million.
Average Net Monthly Connected Fitness Churn was 0.73%, with a 12-month retention rate of 92%.
Net loss was $(313.2) million, or $(1.05) per diluted share, and Adjusted EBITDA was $(45.1) million.
Revenue by Segment
Forward Guidance
Peloton provided guidance for Q1 and full fiscal year 2022, focusing on subscription growth over near-term profitability. They anticipate revenue of $800 million for Q1 and $5.4 billion for the full year, with investments in scaling operations and new products impacting profitability in the near term but expecting a return to Adjusted EBITDA profitability for FY 2023.
Positive Outlook
- Maximize growth in Connected Fitness Subscriptions
- Democratize access to Connected Fitness
- Expand our content offering across both cardio and strength pillars
- Successfully launch Tread in Q1 and position ourselves for additional product launches
- Continue to build a world class team and infrastructure to support our global growth
Challenges Ahead
- Price decrease in our original Bike
- Significant increases in commodity costs and freight rate increases
- A sales mix shift to Tread
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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