NASDAQ$PTON
Peloton Interactive · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Peloton's turnaround plan showed significant progress with improved free cash flow, gross margin, and adjusted EBITDA.
Peloton's Q1 2023 results indicate substantial progress in its turnaround efforts. The company demonstrated improvements in free cash flow, gross margin, and adjusted EBITDA. Peloton ended the quarter with $938 million of unrestricted cash and an unused revolving credit line of $500 million.
- Implemented a restructuring plan to variablize cost structure and generate significant annual cost savings.
- Secured $750 million in financing and maintained a liquid cash balance of roughly one billion dollars.
- Simplified operations by exiting owned-manufacturing in Taiwan.
- Entered into new partnerships with iconic retailers Amazon and Dick’s Sporting Goods.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$617M
Revenue by segment
Peloton · $617M total across 2 segments · Q1 2023
- Subscription$412M+35.6%66.9%
- Connected Fitness Products$204M-59.2%33.1%
Forward guidance
Peloton anticipates near-term demand for Connected Fitness hardware to remain challenged due to macro economic uncertainties. The forecast incorporates a seasonal mix-shift toward the Connected Fitness segment, expected holiday promotional activity, a mix-shift of sales toward the rental program, as well as the impact from expanding third-party retail partnerships. Connected Fitness churn is expected to be similar to Q1.
Tailwinds
- Seasonal mix-shift toward Connected Fitness segment
- Expected holiday promotional activity
- Mix-shift of sales toward rental program
- Impact from expanding third-party retail partnerships
- Connected Fitness churn expected to be similar to Q1
Headwinds
- Near-term demand for Connected Fitness hardware likely to remain challenged
- Macro economic uncertainties
- Approximately $70 million of additional restructuring related cash charges expected in FY'23
- A portion of restructuring cash charges expected to impact Q2
- Uncertainty of the holiday selling season on overall performance
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 2023
+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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