Key TakeawaysPeloton Interactive posted year-over-year quarterly revenue growth for the first time in more than two years.The company reported a narrower-than-expected loss and made progress on its restructuring plan.Shares soared more than 35% in intraday trading Thursday. Peloton Interactive (PTON) shares raced more than 35% higher in intraday trading Thursday after the company posted year-over-year quarterly revenue growth for the first time in more than two years. The home fitness equipment and subscrip ...

Peloton Interactive reported its first sales increase in nine quarters and beat estimates, indicating that the fitness equipment maker’s years-long turnaround efforts were paying off, sending its shares surging 28% on Thursday.The restructuring aims to stanch a slump in sales of its high-end, at-home equipment following a boom during the pandemic as customers cut back on discretionary spending in the face of elevated interest rates and sticky inflation.Peloton reported a 0.2% rise in sales for the fourth qu ...

Financial Data and Key Metrics Changes - The company ended Q4 with 2.98 million paid connected fitness subscribers, reflecting a net decrease of 75,000 in the quarter, which exceeded the high end of guidance due to higher-than-expected gross additions [28] - Total revenue for the quarter was $644 million, slightly above the guidance range and up 0.2% year-over-year [30] - Total gross profit was $312 million, yielding a gross margin of 48.5%, which was above the high end of guidance [31] - Adjusted EBITDA was $70 million, a $105 million improvement from the previous year, and free cash flow was $26 million, marking the second consecutive quarter of positive free cash flow [33][34] Business Line Data and Key Metrics Changes - Connected fitness segment revenue was $212 million, while subscription segment revenue was $431 million [30] - The connected fitness segment gross margin was 8.3%, with adjusted gross margin expanding over 15 percentage points compared to the same period last year [31] - The bike rental program for the original bike was ceased due to insufficient refurbished inventory, while the Bike+ rental program showed higher take rates [12][13] Market Data and Key Metrics Changes - The overall Connected Fitness market is still declining year-over-year post-COVID, but the decline has lessened dramatically since fiscal 2022, indicating a potential inflection point for growth [46] - The company expects softness in Connected Fitness hardware demand due to macroeconomic uncertainty [47] Company Strategy and Development Direction - The company is focused on aligning its cost structure to improve profitability and deliver meaningful free cash flow without requiring growth [9] - Strategic priorities include investing in innovation for sustainable growth, optimizing the business model, and exploring partnerships to expand reach [14] - The company is also focused on improving hardware gross margins and reducing promotional activities to enhance profitability [80][81] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term growth potential of the Connected Fitness category despite short-term challenges [47] - The company is prioritizing financial results, including revenue, gross margin, and adjusted EBITDA, while also focusing on free cash flow [39] - Future guidance reflects expectations of declining hardware sales and a modest increase in churn rates, with a focus on improving engagement through product and content innovation [38][39] Other Important Information - The company completed a successful refinancing of its balance sheet, decreasing debt by approximately $200 million and extending maturities to 2029 [10] - The company is exploring new content and features for its app, focusing on enhancing member experience and engagement [30][41] Q&A Session Summary Question: Update on the Connected Fitness market and key growth initiatives for fiscal year '25 - Management indicated that the Connected Fitness market is still declining but closer to recovery, with key growth initiatives including software innovation and capitalizing on the Tread opportunity [46][48] Question: Key factors to improve LTV-to-CAC - Management highlighted the focus on efficiency in marketing spend and improving hardware margins as key factors to enhance the LTV-to-CAC ratio [52][54] Question: Subscriber decline components and bike rental program - Management explained that the subscriber decline is influenced by reduced marketing spend and the cessation of the original bike rental program, with no plans to toggle rental options currently [59][60] Question: Insights on subscription pricing and churn rates - Management stated there are no immediate plans to increase subscription prices, while churn rates are expected to remain around 1.9% due to various macroeconomic factors [64][66] Question: Connected Fitness market white space and gross margin improvements - Management expressed optimism about untapped opportunities in strength and Tread markets, with expectations for substantial improvements in connected fitness gross margins through better inventory management and reduced promotions [76][80]

Ljupco/iStock via Getty Images Investment Thesis Peloton Interactive, Inc. (NASDAQ:PTON) just came out with fiscal Q4 2024 earnings that showed all the bears just how wrong they were. And I want to include myself in that lineup as one of the most outspoken SA bears on PTON. The business is shrinking, and of that, there's no doubt. But the fact of the matter is that Peloton is likely going to survive! I love investing because it's the best reminder (outside of marriage life) of what a complete idiot you can ...

Core Insights - Peloton Interactive reported earnings per share of -8 cents, which exceeded the analyst estimate of -17 cents [1] - The company achieved revenue of $643.60 million, surpassing the analyst estimate of $630.48 million by 2.08% [1] Financial Performance - Earnings per share: -8 cents, better than the expected -17 cents [1] - Revenue: $643.60 million, compared to the estimated $630.48 million [1]

Peloton Interactive, Inc. (PTON) reported fourth-quarter fiscal 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Following the results, the company’s shares increased 12% in the pre-market trading session on Aug 22.Earnings and RevenuesPTON reported an adjusted loss per share of 8 cents, narrower than the Zacks Consensus Estimate of a loss of 18 cents. In the prior-year quarter, the company had reported an adjusted loss of 68 cents per share. Revenues for the quarter ...

Peloton achieved positive free cash flow for the second consecutive quarter, blowing out expectations.Peloton Interactive (PTON 27.83%) looks to finally be reaping some benefits from a turnaround plan long in the making. Investors piled into the interactive fitness company's stock Thursday after Peloton reported its fiscal fourth-quarter results.Shares were up 27% just before 11 a.m. ET, after the company beat earnings and revenue expectations as the company continues to execute its turnaround strategy. Eve ...

For the quarter ended June 2024, Peloton (PTON) reported revenue of $643.6 million, up 0.2% over the same period last year. EPS came in at -$0.08, compared to -$0.68 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $626.19 million, representing a surprise of +2.78%. The company delivered an EPS surprise of +55.56%, with the consensus EPS estimate being -$0.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Group 1 - Peloton Interactive Inc reported smaller-than-expected losses of 8 cents per share for the second quarter, alongside a revenue beat as sales grew for the first time in over two years [1] - The company is now prioritizing profitability by cutting marketing and sales expenses [1] - Despite being in penny stock territory, Peloton's stock rose 17.4% to $3.95, breaking through the 60-day moving average and bouncing off its lowest level since May [1] Group 2 - The stock still has a year-to-date deficit of 34.8% but is on track for its best single-session increase since February 2023 [1] - Options traders are focusing heavily on calls, with a 50-day call/put volume ratio of 8.09, which is higher than 93% of annual readings [1] - Today's options activity included 105,000 calls and 10,000 puts exchanged, which is 34 times the intraday average volume, with the September 3.50 call being the most active [2]

Core Viewpoint - Peloton is introducing a one-time $95 activation fee for new subscribers who purchase used equipment, aiming to capitalize on the growing trend of consumers buying second-hand fitness machines [1][2] Group 1: Activation Fee and Revenue Generation - The activation fee is expected to generate incremental revenue and gross profit, supporting Peloton's investments in enhancing the fitness experience for members [2] - The company has observed a 16% year-over-year growth in new members who acquired used Bikes or Treads from secondary markets [1] Group 2: Market Dynamics and Consumer Behavior - There are approximately one million unused Peloton Bikes globally, representing a potential revenue source for the company [3] - The secondary market offers significant savings for consumers, with used Bikes priced at $499 compared to $1,445 for new ones, which may not deter purchases despite the activation fee [3][4] Group 3: Customer Experience and Support - New members purchasing used equipment will receive a high-quality onboarding experience, including virtual custom fittings and ride history summaries [4] - Peloton is also providing discounts on accessories for new members, aiming to enhance their overall experience [5]