NASDAQ$PTON
Peloton Interactive · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
Peloton's Q1 2021 was marked by substantial growth in revenue and subscriptions, driven by strong demand and successful product launches.
Peloton Interactive, Inc. reported a significant increase in revenue and subscriptions for Q1 2021. Total revenue grew by 232% to $757.9 million, and ending Connected Fitness Subscriptions increased by 137% to over 1.33 million. The company launched Bike+ and announced the new Peloton Tread, contributing to its growth and profitability, with a net income of $69.3 million and an Adjusted EBITDA of $118.9 million.
- Total revenue grew 232% year-over-year to $757.9 million, driven by strong demand for Bike and Bike+.
- Ending Connected Fitness Subscriptions increased 137% year-over-year to over 1.33 million.
- Net income was $69.3 million, with Adjusted EBITDA at $118.9 million, representing a 15.7% Adjusted EBITDA margin.
- The company launched Bike+ and announced the new Peloton Tread, expanding its product offerings.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$758M
Revenue by segment
Peloton · $758M total across 2 segments · Q1 2021
- Connected Fitness Products$601M+274.0%79.4%
- Subscription$157M+132.9%20.6%
Forward guidance
Peloton anticipates continued growth and high demand, but expects to operate under supply constraints for the foreseeable future. They are also incurring additional shipping-related expenses in Q2 to alleviate delivery delays. For Q2, they expect revenue of $1.0 billion and an Adjusted EBITDA of $70 million, representing a 7.0% Adjusted EBITDA Margin. For the full fiscal year, they now expect revenue of at least $3.9 billion and Adjusted EBITDA of at least $300 million.
Tailwinds
- Expect normalized order-to-delivery windows for the Bike by the end of the calendar year.
- Expect leverage in fixed costs of content production to be offset by elevated engagement levels.
- Expect higher penetration of Digital Subscriptions.
- Expect continued fitness and wellness programming investments.
- For the full fiscal year, they now expect revenue of at least $3.9 billion.
Headwinds
- Expect to operate under supply constraints for the foreseeable future.
- Bike+ wait times will likely be elevated for the next couple of quarters.
- Incurring additional shipping-related expenses in Q2 to alleviate delivery delays.
- Expect Q2 gross margin to temporarily decline to about 39%, implying a Connected Fitness Product Gross Margin of 35% and Subscription Contribution Margin of 63%.
- Challenges associated with port congestion and COVID-19-related warehouse closures impacted Bike+ delivery dates.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2021
+0.1%
Avg return
Earnings day
+0.5%
Avg return
5 days after
+1.8%
Avg return
30 days after
52%
14 / 27 earnings
Positive
+44.0%
Q4 2024
Best reaction
-38.1%
Q1 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | +8.5% | +3.5% | +10.8% | |
| Q2 2026 | -25.7% | -26.4% | -35.2% | |
| Q1 2026 | +13.8% | +11.2% | -4.3% | |
| Q3 2025 | -6.9% | -2.4% | +4.6% | |
| Q2 2025 | +12.0% | +15.3% | -18.1% | |
| Q1 2025 | +9.0% | +15.2% | +55.5% | |
| Q4 2024 | +44.0% | +43.5% | +45.8% | |
| Q3 2024 | +6.5% | +27.0% | +13.0% | |
| Q2 2024 | -23.7% | -21.2% | -17.3% | |
| Q1 2024 | +8.3% | +1.2% | +29.3% | |
| Q4 2023 | -21.1% | -16.2% | -36.2% | |
| Q3 2023 | -11.6% | -11.3% | -5.2% | |
| Q2 2023 | +31.3% | +22.1% | +7.2% | |
| Q1 2023 | +8.8% | +11.0% | +54.1% | |
| Q4 2022 | -21.3% | -28.9% | -36.9% | |
| Q3 2022 | -12.7% | +12.3% | -21.3% | |
| Q2 2022 | +30.3% | +16.6% | -24.0% | |
| Q1 2022 | -38.1% | -44.2% | -51.6% | |
| Q4 2021 | -10.2% | -13.8% | -20.3% | |
| Q3 2021 | +1.4% | +10.2% | +24.7% | |
| Q2 2021 | +0.8% | +0.4% | -28.6% | |
| Q1 2021 | +5.8% | -11.3% | -3.5% | |
| Q4 2020 | -7.8% | -6.3% | +34.9% | |
| Q3 2020 | +21.8% | +18.2% | +26.7% | |
| Q2 2020 | -13.4% | -14.6% | -25.4% | |
| Q4 2019 | -0.5% | +5.7% | +43.5% | |
| Q1 2020 | -6.5% | -4.4% | +27.2% | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — | |
| Q4 2018 | — | — | — | |
| Q3 2018 | — | — | — |
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