Peloton Interactive · Q4 2021 earnings

Briefing

Peloton's Q4 2021 results reflected growth in connected fitness subscriptions and digital subscriptions, with total revenue increasing. However, the company faced a net loss due to recall-related costs and increased operating expenses.

Peloton's Q4 2021 saw a 54% increase in total revenue, reaching $937 million, driven by strong growth in Connected Fitness and digital subscriptions. Despite this growth, the company reported a net loss of $313.2 million, or $1.05 per diluted share, and an Adjusted EBITDA loss of $45.1 million. The results were impacted by recall-related costs and increased operating expenses.

• Connected Fitness subscriptions increased by 114% to 2.33 million, while paid Digital Subscriptions grew by 176% to 874,000.
• Total revenue increased by 54% to $937 million.
• Average Net Monthly Connected Fitness Churn was 0.73%, with a 12-month retention rate of 92%.
• Net loss was $(313.2) million, or $(1.05) per diluted share, and Adjusted EBITDA was $(45.1) million.

Headline financials

Revenue & EPS history

Peloton provided guidance for Q1 and full fiscal year 2022, focusing on subscription growth over near-term profitability. They anticipate revenue of $800 million for Q1 and $5.4 billion for the full year, with investments in scaling operations and new products impacting profitability in the near term but expecting a return to Adjusted EBITDA profitability for FY 2023.