NASDAQ$PTON
Peloton Interactive · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Reported strong Q2 results, outperforming on paid subscribers to Connected Fitness and App, gross margin, and free cash flow.
Peloton reported Q2 2024 results, outperforming expectations for paid subscribers, gross margin, and free cash flow. While revenue growth remains a challenge, the company is focused on restoring positive free cash flow and revenue growth in the coming quarters.
- Ending Paid Connected Fitness Subscriptions increased to 3.004 million.
- Average Net Monthly Paid Connected Fitness Subscription Churn was 1.2%.
- Ended the quarter with 718 thousand Peloton App subscribers.
- Total revenue was $743.6 million.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$744M
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
The company's Q3 outlook includes expectations for Paid Connected Fitness Subscriptions, Paid App Subscriptions, Total Gross Margin, and Adjusted EBITDA. The full year guidance reflects hardware sales trends, Bike rental program growth, and Tread+ revenue, tempered by uncertainties in subscriber growth and the macroeconomic outlook.
Tailwinds
- Expects a similar Paid Connected Fitness Churn rate similar to Q2.
- Expects a sequential improvement in gross additions due to seasonality coupled with continued improvements to our conversion funnel.
- Expects a sequential increase in Q3 total gross margin as a result of an improvement in Connected Fitness gross margin due to the introduction of Tread+ deliveries along with a smaller impact from seasonal mix-shift toward our Subscription segment.
- Expects a sequential improvement in Q3 Adjusted EBITDA mainly due to lower sales and marketing expense.
- Faster growth for our Bike rental program and revenue from deliveries of Tread+.
Headwinds
- Uncertainty surrounding our ability to efficiently grow Paid App subscribers
- Performance of other new initiatives
- An uncertain macroeconomic outlook.
- Expectation that churn will follow our historical seasonal pattern, which includes a seasonal increase in paused subscriptions in Q4.
- Current trends for hardware sales will persist through the remainder of fiscal year.
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 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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro