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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.
Peloton
Peloton
Peloton Revenue by Segment
Revenue by Segment
Connected Fitness Products Revenue
CapyFin.comSubscription Revenue
CapyFin.com 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
- Investments in marketing to broaden our appeal
- Accelerated investments in new products and features
Revenue & Expenses
Visualization of income flow from segment revenue to net income