NASDAQ$PTON
Peloton Interactive · Q4 2024 earnings
Q4 2024 earnings · · Investor relations
Briefing
Peloton's Q4 2024 performance showed revenue growth and improved profitability.
Peloton ended FY2024 with strong Q4 performance, meeting or exceeding guidance on key metrics. Total revenue was $644 million, up 0.2% Y/Y, with subscription revenue up 2.3% Y/Y. The company achieved a GAAP Net Loss of $30 million, an improvement of $211 million Y/Y, and positive Adjusted EBITDA and Free Cash Flow for the second consecutive quarter.
- Total revenue increased modestly by 0.2% Y/Y to $644 million.
- Subscription revenue grew by 2.3% Y/Y to $431 million with a gross margin of 68.2%.
- GAAP Net Loss improved by $211 million Y/Y to $30 million.
- Adjusted EBITDA was $70 million, up $105 million Y/Y, and Free Cash Flow was $26 million, up $100 million Y/Y.
Headline financials
Revenue & EPS history
Peloton · Revenue · Quarterly
$644M
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
Peloton's Q1 FY25 outlook includes expectations for declining hardware sales, a similar Average Net Monthly Paid Connected Fitness Churn rate to Q4 FY24, and a sequential decline in gross additions for Paid App Subscriptions with improved churn. Revenue is expected to be between $560 million and $580 million, with a total gross margin of 50.0% and Adjusted EBITDA between $50.0 million and $60.0 million.
Tailwinds
- Expect a sequential increase in Q1 total gross margin as a result of a seasonal mix-shift toward our Subscription segment.
- Expect a significant Y/Y improvement in Q1 Adjusted EBITDA mainly due to lower sales and marketing expense and continued progress toward achieving our cost reduction plan.
- Expect an Average Net Monthly Paid Connected Fitness Churn rate similar to Q4 FY24.
- Expect sequential improvement in Average Monthly Paid App Subscription Churn, due to stabilization in our Corporate Wellness Paid App subscriber base.
- Total Gross Margin is guided at 50.0%.
Headwinds
- Q1 is typically a seasonally low quarter for hardware sales and we also expect continued sales headwinds as a result of an uncertain macroeconomic environment.
- Our sales outlook reflects our decisions to reduce sales and marketing spend Y/Y as we focus on improving media efficiency, to run fewer promotions within the quarter, and to no longer offer a rental option for our original Bike.
- Q1 Paid Connected Fitness Subscription guidance reflects an expected Y/Y decline in hardware sales based on multiple factors.
- Q1 Paid App Subscription guidance reflects an expected sequential decline in gross additions due to seasonality.
- Total Revenue is guided at between $560.0 and $580.0 million, a Y/Y decline of 4%.
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 Q4 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 | — | — | — |
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