NASDAQ$PTON
Peloton Interactive · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Peloton's Q3 2023 performance showcased growth in connected fitness subscriptions and gross profit, alongside significant reductions in Adjusted EBITDA and Free Cash Flow losses.
Peloton's Q3 2023 showed positive year-over-year trends, including a 5% increase in connected fitness subscriptions, a 47% rise in gross profit, and substantial reductions in both Adjusted EBITDA and Free Cash Flow losses. The company also settled a patent license agreement with DISH Technologies, which is expected to impact Q4 cash flow.
- Connected fitness subscriptions grew by 5% year-over-year.
- Gross profit increased by 47% year-over-year.
- Adjusted EBITDA loss decreased by $175 million year-over-year.
- Free Cash Flow loss reduced by $691 million year-over-year.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$749M
Revenue by segment
Peloton · $749M total across 2 segments · Q3 2023
- Subscription$425M+14.8%56.7%
- Connected Fitness Products$324M-45.5%43.3%
Forward guidance
Peloton's Q4 FY23 outlook anticipates a decrease in ending connected fitness subscriptions and revenue, reflecting typical seasonality. Gross margin is expected to improve sequentially due to a mix-shift towards the Subscription segment, while connected fitness subscription churn is anticipated to increase modestly.
Tailwinds
- Sequential gross margin improvement is expected.
- Improvement will be driven by a continued mix-shift of total revenues toward our Subscription segment.
- Progress toward achieving our financial targets for FY23.
- Progress on free cash flow which improved $691 million compared to one year ago.
Headwinds
- Guidance range for end of period Connected Fitness Subscriptions reflects lower near-term visibility.
- Guidance range for revenue reflects lower near-term visibility.
- Typically the lowest volume quarter of our fiscal year.
- Anticipate a modest sequential increase in Connected Fitness subscription churn.
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 2023
+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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