NASDAQ$PTON
Peloton Interactive · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Peloton had a solid Q1 FY24, performing at or above guidance and focusing on business performance and growth initiatives.
Peloton's Q1 FY24 revenue was $595.5 million, with a gross profit of $285.4 million and a gross margin of 47.9%. The company reported a net loss of $159.3 million and free cash flow of $(83.2) million. Peloton ended the quarter with 2.96 million paid connected fitness subscriptions and 763 thousand paid app subscriptions.
- Total revenue was $595.5 million, within the guidance range of $580 million to $600 million.
- Total Gross profit was $285.4 million, yielding a gross margin of 47.9%, ahead of the 46.5% guidance.
- Ended the quarter with 2.96 million Ending Paid Connected Fitness Subscriptions and 763 thousand Peloton App subscribers.
- Net cash used in operating activities was $(79.2) million and free cash flow was $(83.2) million, including $(23.5) million associated with the Bike seat post recall.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$596M
Revenue by segment
Peloton · $596M total across 2 segments · Q1 2024
- Subscription$415M+0.7%69.7%
- Connected Fitness Products$181M-11.6%30.3%
Forward guidance
Peloton anticipates seasonal growth in hardware sales and modest improvement in Paid Connected Fitness Subscription churn in Q2. They also expect a sequential improvement in Paid App gross additions, offset by increased churn due to the expiration of legacy content access. A sequential decline in Q2 total gross margin and Adjusted EBITDA is expected due to a mix-shift toward Connected Fitness and higher sales and marketing expenses.
Tailwinds
- Seasonal growth in hardware sales is expected in Q2.
- Modest sequential improvement to Paid Connected Fitness Subscription churn is anticipated.
- Sequential improvement in Paid App gross additions is expected due to improvements to the conversion funnel.
- Revenue growth acceleration in the second half of the fiscal year, fueled, in part, by the expected relaunch of Tread+.
- Continued growth of our Bike rental program and strong growth in our International markets.
Headwinds
- Uncertain macroeconomic environment.
- Sequential increase in Paid App Subscription churn due to the expiration of legacy content access.
- Sequential decline in Q2 total gross margin as a result of a seasonal mix-shift toward our Connected Fitness segment.
- Sequential decline in Q2 Adjusted EBITDA due to higher sales and marketing expense.
- Uncertainty related to the performance of the Tread+ relaunch and our ability to efficiently grow Paid App subscribers.
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 2024
+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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