NASDAQ$PTON

Peloton Interactive · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Peloton experienced robust demand and engagement, driving significant revenue growth and profitability.

Peloton reported a strong second quarter with significant growth in connected fitness subscriptions, total revenue, and member engagement. The company's investments in hardware, software, and content have driven robust demand and member engagement. Total revenue grew by 128% to $1,064.8 million, and net income was $63.6 million.

  • Connected Fitness Subscriptions grew 134% to approximately 1.67 million.
  • Paid Digital Subscriptions grew 472% to approximately 625,000.
  • Total revenue grew 128% to $1,064.8 million.
  • Net Income was $63.6 million, or $0.18 per diluted share.

Headline financials

Total Revenue

$1.06B

Previous: $466M+128.4%
EPS (adj)

$0.18

Previous: -$0.20+190.0%
Ending Paid Connected Fitness Subscriptions

1.7M

Previous: 712.0K+134.2%
Average Net Monthly Paid Connected Fitness Subscription Churn

0.8%

Previous: 0.7%+2.7%
Capital Expenditures

-$119M

Previous: -$48.8M-144.7%
Free Cash Flow

-$55.8M

Previous: -$104M+46.4%
Net Income

$63.6M

Previous: -$55.4M+214.8%
Operating Income

$58.8M

Previous: -$61.5M+195.6%
Gross Profit

$425M

Previous: $197M+115.5%
Cash & Equivalents

$1.25B

Previous: $533M+134.3%
Total Assets

$3.91B

Previous: $2.58B+51.3%
Stock-Based Comp

$37.5M

Previous: $17.1M+119.3%

Revenue & EPS history

Peloton · Revenue · Quarterly

$1.06B

Q2 2021+128.4%vs Q2 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Peloton · $1.06B total across 2 segments · Q2 2021

  • Connected Fitness Products
    $870M+128.3%
  • Subscription
    $195M+152.5%

Forward guidance

Peloton expects continued robust demand for its products, but is facing inventory constraints and longer delivery times. The company is investing in air freight and expedited ocean freight to improve delivery windows.

Tailwinds

  • Peloton anticipates $1.10 billion in revenue for Q3.
  • The full fiscal year 2021 revenue outlook was raised to $4.075 billion.
  • The company expects Average Net Monthly Connected Fitness Churn to remain under 0.75% for Q3.
  • Gross Margin of 35% is expected for Q3.
  • Continued strong demand for products and an improving inventory outlook are expected.

Headwinds

  • Inventory constrained with longer than acceptable wait times for product delivery.
  • Incremental investment of over $100 million in air freight and expedited ocean freight will dampen near-term profitability.
  • Q3 Adjusted EBITDA is expected to be $10 million.
  • Connected Fitness Product year-over-year margin contraction is expected due to expedited shipping investments and the September price reduction of the original Bike.
  • Upward ocean freight pricing pressure is expected.

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 Q2 2021

Historical avgQ2 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

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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