NASDAQ$PTON

Peloton Interactive · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Peloton's Q2 2022 performance was marked by revenue growth, a rise in connected fitness subscriptions, and a net loss, alongside the announcement of leadership and restructuring changes.

Peloton Interactive, Inc. reported a 6% increase in total revenue to $1,133.9 million for Q2 2022, driven by subscription revenue growth, while experiencing a net loss of $(439.4) million. The company's connected fitness subscriptions grew by 66% to 2.77 million. Peloton also announced significant restructuring initiatives, including a change in CEO and workforce reductions, aimed at streamlining operations and improving profitability.

  • Connected Fitness Subscriptions increased by 66% to 2.77 million.
  • Total revenue grew by 6% to $1,133.9 million.
  • Average Net Monthly Connected Fitness Churn was 0.79%.
  • Net loss amounted to $(439.4) million, or $(1.39) per diluted share.

Headline financials

Total Revenue

$1.13B

Previous: $1.06B+6.5%
EPS (adj)

-$1.39

Previous: $0.18-872.2%
Ending Paid Connected Fitness Subscriptions

2.8M

Previous: 1.7M+66.0%
Average Net Monthly Paid Connected Fitness Subscription Churn

0.8%

Previous: 0.8%+3.9%
Capital Expenditures

-$178M

Previous: -$119M-49.4%
Free Cash Flow

-$618M

Previous: -$55.8M-1007.2%
Net Income

-$439M

Previous: $63.6M-790.9%
Operating Income

-$426M

Previous: $58.8M-824.0%
Gross Profit

$280M

Previous: $425M-34.0%
Cash & Equivalents

$1.61B

Previous: $1.25B+28.7%
Total Assets

$5.48B

Previous: $3.91B+40.2%
Stock-Based Comp

$71.9M

Previous: $37.5M+91.7%

Revenue & EPS history

Peloton · Revenue · Quarterly

$1.13B

Q2 2022+6.5%vs Q2 2021
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Peloton · $1.13B total across 2 segments · Q2 2022

  • Connected Fitness Products
    $796M-8.5%
  • Subscription
    $338M+73.3%

Forward guidance

Peloton anticipates revenue between $950 million and $1 billion for Q3 2022, with a gross profit margin of approximately 23%. The adjusted EBITDA loss is projected to be between $(140) million and $(125) million. For the full fiscal year 2022, revenue is expected to be between $3.7 billion and $3.8 billion, with a gross profit margin of approximately 28% and an adjusted EBITDA loss between $(675) million and $(625) million.

Tailwinds

  • Expects approximately 2.93 million ending Connected Fitness Subscriptions for Q3 2022.
  • Subscription Contribution Margin will continue to expand year-over-year.
  • Intends to manage discretionary spend tightly in the back-half of the year.
  • Comfortable with balance sheet position.
  • Expects to exit the year with approximately $1.2 billion in cash and $500 million of additional revolver capacity.

Headwinds

  • Year-over-year reduction in Connected Fitness gross margin.
  • Reduced demand plan.
  • Limited benefit from pricing changes and warehouse restructuring in Q3.
  • Gross Margin of approximately 23% for Q3 2022.
  • Adjusted EBITDA loss estimate of $(140) million to $(125) million for Q3 2022.

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 2022

Historical avgQ2 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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