NASDAQ$PTON
Peloton Interactive · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Peloton's financial performance declined due to lower demand and higher operating expenses, but subscription revenue continued to grow.
Peloton's Q3 2022 revenue decreased by 24% year-over-year to $964.3 million. The company reported a net loss of $757.1 million, and free cash flow was $(746.7) million. However, subscription revenue grew by 55% year-over-year, reaching $369.9 million, and the company is implementing cost reduction initiatives to improve cash flow and profitability.
- Total revenue decreased by 24% year-over-year to $964.3 million.
- Net loss was $(757.1) million, compared to $(8.6) million in the prior year.
- Ending Connected Fitness Subscriptions grew to 2.96 million, a 42% increase year-over-year.
- Subscription revenue grew by 55% year-over-year to $369.9 million.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$964M
Revenue by segment
Peloton · $964M total across 2 segments · Q3 2022
- Connected Fitness Products$594M-41.9%61.6%
- Subscription$370M+54.5%38.4%
Forward guidance
Peloton expects Q4 revenue to be between $675 million and $700 million, with a gross margin of approximately 31%. Adjusted EBITDA is projected to be between $(120) million and $(115) million.
Tailwinds
- Accelerated sales due to recent hardware price reductions.
- Gross margin expected to be approximately 31%.
- FCF to be meaningfully better in Q4 vs. Q3.
- Leveraging of fixed costs in Subscription margin in Q4.
- Small positive impact from the Subscription pricing change.
Headwinds
- Softer demand than previously forecast.
- Modest negative impact from Subscription pricing increase starting June 1.
- Small increase to cancellations due to the Connected Fitness subscription price increase announcement.
- CF margin significantly impacted by recent pricing changes.
- Continued headwinds in freight, storage, and logistics due to the reduction in our demand outlook.
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 Q3 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
| 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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