NASDAQ$PTON

Peloton Interactive · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Peloton's Q1 2022 results reflected growth in subscriptions and revenue, but were impacted by product recalls and pricing adjustments.

Peloton's Q1 2022 showed a 6% increase in total revenue to $805.2 million, driven by Connected Fitness products and subscription growth. Ending Connected Fitness Subscriptions grew 87% to 2.49 million. However, the company reported a net loss of $(376.0) million, or $(1.25) per diluted share, and an Adjusted EBITDA loss of $(233.7) million.

  • Connected Fitness Subscriptions grew 87% to 2.49 million.
  • Paid Digital Subscriptions grew 74% to 887 thousand.
  • Total revenue increased 6% to $805.2 million.
  • Net loss was $(376.0) million, or $(1.25) per diluted share.

Headline financials

Total Revenue

$805M

Previous: $758M+6.2%
EPS (adj)

-$1.25

Previous: $0.20-725.0%
Ending Paid Connected Fitness Subscriptions

2.5M

Previous: 1.3M+86.7%
Average Net Monthly Paid Connected Fitness Subscription Churn

0.8%

Previous: 0.7%+26.2%
Capital Expenditures

-$87.2M

Previous: $49.2M-277.2%
Free Cash Flow

-$463M

Previous: $69.3M-768.4%
Net Income

-$376M

Previous: $69.3M-642.6%
Operating Income

-$360M

Previous: $68.9M-622.1%
Gross Profit

$263M

Previous: $329M-20.1%
Cash & Equivalents

$613M

Previous: $1.43B-57.2%
Total Assets

$4.41B

Previous: $3.48B+26.9%
Stock-Based Comp

$52.9M

Previous: $29.6M+78.7%

Revenue & EPS history

Peloton · Revenue · Quarterly

$805M

Q1 2022+6.2%vs Q1 2021
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Peloton · $805M total across 2 segments · Q1 2022

  • Connected Fitness Products
    $501M-16.7%
  • Subscription
    $304M+94.3%

Forward guidance

Peloton is reintroducing guidance ranges due to the challenging consumer environment. They anticipate Q2 revenue of $1.1 billion to $1.2 billion and full year revenue of $4.4 billion to $4.8 billion. Gross margin for Q2 is expected to be approximately 24% and approximately 32% for the full year.

Tailwinds

  • Expects a healthy holiday selling season.
  • Forecast assumes unit sales modestly ahead of last year’s Q2 levels.
  • Driven by growing consumer interest in the Connected Fitness category.
  • Driven by a resumption of marketing and promotional activity.
  • Expect Subscription Contribution Margin will continue to modestly expand year-over-year.

Headwinds

  • More pronounced tapering of demand related to the ongoing opening of the economy.
  • Richer than anticipated mix of sales to original Bike.
  • Year-over-year reduction in Connected Fitness gross margin will be driven primarily by the price reduction of our original Bike.
  • Deleveraging of fixed costs in our supply chain.
  • Higher than anticipated variable costs including commodities and freight.

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 2022

Historical avgQ1 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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